TaxTMI 
TaxTMI 
2016 (7) TMI 607
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....om the orders of authorities below that the tax effect involved in the above referred case is below the monetary limit (Rs. 10,00,000/-) prescribed by the Central Board of Director Taxes(CBDT), vide its Circular No.21/2015(F.No.l42/2007-ITJ (Pt.) dated 10th December, 2015. 3. Shri Bhupendra Shah appeared on behalf of the assessee. The Departmental Representative (DR) on a query by the Bench fairly conceded that the tax effect involved in the above case is less than Rs. 10.00 lacs. Considering these facts, we dismiss the appeal holding it as not maintainable u/s. 268A of the Act. 4. In the result, the appeal of the department is dismissed. Cross-Objection No.92/Mum/2016 "A Grounds : 1. In the facts and....
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.... issued bogus bills/accommodation. On the basis of this information, the AO reopened the assessment and the case was proceeded with u/ss 147 and 148 of the Income Tax Act, 1961. The AO issued notice u/s 148 to the assessee, calling details vide letter dated 1.7.2014. The assessee was also asked to produce the persons from whom the assessee had booked purchases during FY 2008-09, to support the debit entry of expenses in the assessee's profit and loss account, specifically pointing out that the onus of providing the correctness of deductible expense is on assessee and only because of payment is made through cheque and assessee has bills of the said party, the purchases do not become genuine, in view of the categorical disowning by the said p....
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....T(A) erred in confirming the addition of Rs. 549250/-, being 25% out of purchase of Rs. 21,97,000/- by overlooking that the statement was given by a third party and no opportunity was given to the assessee to cross-examine them. He further submitted that no addition of purchases can be made without verifying the facts which are not established. He submitted that the money has come back to the assessee and disregarding the fact that no sales can be made without purchases. The ld. Counsel submitted that the list of defaulters on the website of Maharashtra Sales Tax Department is not a conclusive evidence to sustain the addition only on an adhoc basis. In support of his contentions he relied on the following case laws : a) ACIT V/s Shr....
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....ese documents have not been considered by the authorities below and they made the addition only on the basis of statement of a third person, without giving any opportunity to the assessee. Therefore, in view of this legal and factual aspect, I feel that if the assessee be given opportunity before the AO to substantiate its case, it will meet the ends of justice and no prejudice would be caused to the revenue. It is seen that this Tribunal has considered this issue in the case of Deepak Popatlal Gala, in ITA No. 5920/M/13 and vide order dated 27.3.2015, it has held as under: "10. The next issue relates to disallowance made out of purchases and assessed u/s 69C of the Act. We heard the parties and perused the record. The total purchase expen....
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..... 2826/Mum/2013 (AY-2009-10) dated 5.11.2014 In all the above said cases, the Co-ordinate Benches of the Tribunal has held that the AO was not justified in making the addition on the basis of statements given by the third parties before the Sales Tax Department, without conducting any other investigation. In the instant case also, the assessing officer has made the impugned addition on the basis of statements given by the parties before the Sales tax department. We notice that the ld.CIT(A) has taken note of the fact that no sales could be effected without purchases. He has further placed reliance on the decision rendered by Hon'ble Gujarat High Court in the case of CIT Vs. M.K. Brothers (163 ITR 249). He has further relied upon the....